NEW DELHI, India — The India–U.S. Bilateral Trade Agreement marks a major expansion of India’s global trade footprint, granting sustained preferential access for Indian exports to the U.S. market valued at more than $30 trillion, according to an official statement issued on Monday.
The agreement introduces broad tariff rationalization, zero-duty access across several major product categories, expanded digital and technology cooperation, and a framework designed to protect India’s farmers, micro, small and medium enterprises, and domestic industry.
India’s exports to the United States stood at $86.35 billion in 2024. Under the new agreement, competitive access has been significantly strengthened across sectors including textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals and technology-driven industries.
Tariffs on $30.94 billion worth of Indian exports have been reduced from 50 percent to 18 percent, while duties on an additional $10.03 billion have been cut from 50 percent to zero. As a result, a substantial share of Indian goods entering the U.S. will now face sharply lower tariffs or enjoy complete duty-free access, improving price competitiveness in the market.
Labour-intensive textile and apparel exports from India will benefit from tariff reductions from 50 percent to 18 percent, while silk products will receive zero-duty access in a U.S. market valued at $113 billion. Machinery exports will also see tariffs lowered to 18 percent, opening opportunities in a U.S. market estimated at $477 billion.
The leather and footwear sector is expected to see major gains, with tariffs reduced from 50 percent to 18 percent, positioning India as a preferred supplier to a $42 billion U.S. market. Given the sector’s reliance on labour-intensive manufacturing, officials said improved access is likely to support production growth and employment, particularly among MSMEs and regional manufacturing clusters.
Gems and jewellery exports will similarly benefit from tariff cuts from 50 percent to 18 percent, providing preferential access to a U.S. market valued at $61 billion. In addition, zero-duty access has been secured for major product categories such as diamonds, platinum and coins, covering a further $29 billion segment of the U.S. market.
Indian agricultural exports worth $1.36 billion will receive zero additional U.S. duty access, with key products including spices, tea, coffee, fruits, nuts and processed foods gaining zero-duty treatment. Officials said highly sensitive sectors such as dairy, meat, poultry and cereals remain fully protected under the agreement.
The statement said the deal creates a clear tariff advantage for India, as several competing suppliers continue to face higher duties in the U.S. market. These include China at 35 percent, Vietnam and Bangladesh at 20 percent, and Malaysia, Indonesia, the Philippines, Cambodia and Thailand at around 19 percent.
Officials said the agreement is expected to strengthen India’s export competitiveness, boost employment in labour-intensive sectors, and deepen long-term trade ties between the two countries. (Source: IANS)
